Young, but not ir­re­spon­si­ble

Auckland City Harbour News - - YOUR PAPER, YOUR PLACE - ROB STOCK

The idea that the young are feck­less spendthrifts who can’t af­ford homes be­cause of their de­signer life­styles has been laid to rest.

Trea­sury bof­fin Mark Vink was the killer.

Vink delved into his­toric spend­ing fig­ures, and found that the much-ma­ligned Mil­len­ni­als in fact have higher sav­ings rates than baby boomers did when they were the same age.

‘‘From the baby boomers on­ward, the sav­ings rate of each gen­er­a­tion ex­ceed those of the gen­er­a­tion pre­ced­ing it,’’ Vink found.

It’s not that Mil­len­ni­als can’t af­ford homes be­cause of their sav­ings habits. They can’t af­ford homes de­spite their bet­ter sav­ings habits.

So how have older peo­ple come to see the young as wild spendthrifts? There are a num­ber of plau­si­ble ex­pla­na­tions.

The first is that peo­ple tend to think they are re­spon­si­ble for their own suc­cesses. This is

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